Bill Text: TX HB2633 | 2013-2014 | 83rd Legislature | Introduced
Bill Title: Relating to the compensation of an owner of the surface estate in land for damages associated with mineral exploration and production operations.
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2013-04-17 - Left pending in committee [HB2633 Detail]
Download: Texas-2013-HB2633-Introduced.html
83R10702 JAM-D | ||
By: Stephenson | H.B. No. 2633 |
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relating to the compensation of an owner of the surface estate in | ||
land for damages associated with mineral exploration and production | ||
operations. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Subtitle B, Title 3, Natural Resources Code, is | ||
amended by adding Chapter 93 to read as follows: | ||
CHAPTER 93. SURFACE OWNER COMPENSATION | ||
Sec. 93.001. DEFINITIONS. In this chapter: | ||
(1) "Agricultural use" has the meaning assigned by | ||
Section 23.51, Tax Code. | ||
(2) "Mineral developer" means a person who acquires a | ||
mineral estate or a mineral lease for the purpose of extracting or | ||
using minerals from a tract of land for purposes other than | ||
agricultural use. | ||
(3) "Mineral estate" means an estate in or ownership | ||
of all or part of the minerals underlying a tract of land. | ||
(4) "Mineral exploration and production operations" | ||
means the following activities to the extent they require entry on | ||
the surface of a tract of land: | ||
(A) mineral geophysical and seismographical | ||
exploration activities; and | ||
(B) mineral drilling, production, and completion | ||
operations. | ||
(5) "Surface estate" means an estate in or ownership | ||
of the surface of a tract of land. | ||
(6) "Surface owner" means a person who holds record | ||
title to the surface of a tract of land. | ||
Sec. 93.002. APPLICABILITY. (a) This chapter applies only | ||
to land used for agricultural use. | ||
(b) A surface owner is entitled to damages as provided by | ||
this subchapter regardless of whether: | ||
(1) the surface estate of the land has been severed | ||
from the mineral estate; or | ||
(2) the surface owner is the person who executed the | ||
instrument that gave the mineral developer the right to conduct | ||
mineral exploration and production operations on the land. | ||
Sec. 93.003. REMEDIES CUMULATIVE. The remedies provided by | ||
this chapter are in addition to any other remedies provided by law. | ||
Sec. 93.004. RIGHT TO PAYMENT FOR DAMAGES. (a) A mineral | ||
developer shall pay each surface owner an amount equal to the amount | ||
of actual damages sustained by the surface owner for the following, | ||
to the extent the damages are caused by mineral exploration and | ||
production operations on the surface owner's land: | ||
(1) loss of income derived from agricultural use of | ||
the land; | ||
(2) reduction in value of the land; | ||
(3) reduction in value of improvements to the land; | ||
(4) loss of access to the surface of the land; and | ||
(5) loss of the use of the surface of the land. | ||
(b) The computation of the amount of compensation for | ||
damages described by Subsection (a) to which the surface owner is | ||
entitled must take into account: | ||
(1) the amount of land affected by mineral exploration | ||
and production operations; | ||
(2) crop losses or livestock losses; | ||
(3) surface damage; | ||
(4) rental losses; and | ||
(5) the length of the period during which the loss or | ||
reduction in value occurs. | ||
(c) Except as provided by Subsection (d), a surface owner | ||
may be paid the compensation for the amount of the damages in annual | ||
installments or in a lump-sum payment. | ||
(d) A surface owner shall be paid the compensation for the | ||
loss of income derived from agricultural use of the land in annual | ||
installments. | ||
SECTION 2. The change in law made by this Act applies only | ||
to liability for damage to the surface of land caused by the use of | ||
the surface for mineral exploration and production operations on or | ||
after the effective date of this Act. Liability for damage to the | ||
surface of land caused by the use of the surface for mineral | ||
exploration and production operations before the effective date of | ||
this Act is governed by the law in effect on the date the damage was | ||
caused, and that law is continued in effect for that purpose. | ||
SECTION 3. This Act takes effect September 1, 2013. |